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Sep 17, 2024

Hyperlocal news startup Way2News raises $14 million in funding from existing backer WestBridge, others SECTIONS By Rate Story Synopsis Way2News, a hyperlocal news platform, has raised $14 million in funding led by WestBridge Capital. The funds will help expand its presence in South Indian states like Karnataka and Kerala. Founded in 2015, Way2News provides real-time news in eight languages and generates revenue through local advertising. ETtech Raju Vanapala, founder and CEO, Way2News Hyperlocal news platform Way2News has raised $14 million in a new round of funding led by existing investor WestBridge Capital , with participation from venture capitalist Sashi Reddi, founder of US-based software testing company AppLabs. The Hyderabad-based firm plans to use the funds to strengthen its presence in existing markets including Andhra Pradesh , Telangana and Tamil Nadu, and to expand to Karnataka and Kerala. “Over the decades, if you look at the media landscape, every section of the society has not been represented... News gets generated in the metros and is distributed to towns and districts. To address this, we decided to go hyperlocal,” founder and CEO Raju Vanapala told ET. Founded in 2015 by Vanapala, Way2News provides short, hyperlocal news sourced from various citizen journalists and stringers, covering regions from districts to villages and mandals. It also provides various national and international news on its platform. In 2022, the company raised $16.75 million from WestBridge Capital. Currently, Way2News covers around 100 districts across Andhra Pradesh, Telangana, and Tamil Nadu, with plans to add 42 more districts in Karnataka and Kerala following this funding round. It boasts of a monthly active user base (MAU) of approximately 15 million and a monthly download rate exceeding 1 million. It primarily generates revenue through advertising from local retail chains and businesses, with its current monthly revenue at around Rs 6 crore, and aims to reach Rs 8 crore by March 2025, the company said. Competitors in the segment The startup competes with players like Inshorts, which in 2019 launched Public, an app that allows people to record and share happenings around them with real-time local updates. It is available in Hindi, Bengali, Punjabi, Telugu, Tamil, Kannada, Malayalam, among other languages. Dailyhunt is another large news aggregator which serves users in regional languages. Inshorts last raised $60 million in July 2021 from Vy Capital and existing investors, including Tiger Global, A91 Partners, SIG and Tanglin Venture Partners. In April this year, InShorts cofounder and CEO Azhar Iqubal transitioned to the role of chairman, while cofounder Deepit Purkayastha stepped into the position of CEO. The leadership change followed an increase in the company’s losses, which grew by over a third to Rs 309.75 crore in the fiscal year ending March 2023, up from Rs 231.87 crore in FY22. VerSe Innovation, the parent company of DailyHunt, has made several recent acquisitions, as part of its efforts to generate additional income. On August 28, ET reported that VerSe acquired digital marketing solutions firm Valueleaf Group through a cash and stock transaction. According to Tracxn's ‘Internet First Media 2024’ report, India has 4,197 companies in the online news, aggregators, and media network space. Read More News on